China’s Xi Jinping to send top-level envoy to Trump’s inauguration as Beijing braces for escalating trade tensions

When all is said and done, the US and China have come to the reality that they still depend on each other. To that end, China’s President Xi Jinping will send a high-level representative to Donald Trump’s inauguration. This is meant to ease tensions between the two presidents and countries.

Trump extended an extraordinary invitation to Xi to attend his inauguration on January 20. He indicated that he intended to resume the high-level contact with the Chinese leader that he had during his first term in the White House.    

On the other hand, Beijing is trying to reduce friction with Washington as it braces for a severe escalation in trade tensions. The envoy is also expected to engage in discussions with Trump’s staff.

Notably, Chinese officials struggled to meet with Trump aides in the run-up to November’s US election. This sparked concerns in Beijing that they would be unprepared for any move on China.

China’s potential representative 

Dennis Wilder, a former top White House China adviser, said, “Trump is probably deemed too unpredictable for Xi to take the domestic risk of attending in person.” 

He added, “By sending a special envoy of significant stature to get meetings with Trump and his cabinet, Xi can demonstrate that he wishes to get off on the right foot with the Trump administration without risking that he could return home empty-handed or publicly embarrassed.”

Still, several sources suggested Xi could send Han Zheng, the vice president who occasionally fills in on ceremonial functions. Another alternative would be Wang Yi, the Foreign Minister.

To establish a positive relationship, the Chinese must send the appropriate level of official. The presence of any of the officials would be unprecedented, as China has previously been represented by its ambassador in Washington. 

Notably, according to an individual who is well-versed in the situation, certain Trump advisers desired Cai Qi to attend. He is a member of the Politburo Standing Committee who possesses significantly more authority than Han or Wang in his role as Xi’s trusted advisor.

According to an additional individual who is acquainted with the transition team’s perspectives, there was some apprehension that Trump would be dissatisfied if the envoy was only at the Wang or Han level. This is because he had extended an invitation to the Chinese leader.

The state of the China-US trade relationship 

In the present day, the United States is China’s primary export market, while China is one of the largest export markets for US products and services. This trade has resulted in increased profits for American corporations and lower prices for US consumers. 

Apparently, US consumers have benefited from lower prices, and US companies have profited immensely from access to China’s market. American corporations generate hundreds of billions of dollars annually from their sales in China, which they can allocate to their operations in the US. 

The benefits of trade with the United States and the rest of the world have been substantial for China. Adjusted for inflation, China’s economy has expanded by over fivefold since 2001. It is currently the world’s second-largest economy, trailing only the United States. Well, in certain respects, it is the greatest. 

On the other hand, millions of Americans have lost their jobs due to import competition. Washington also worries that US corporations using Chinese technology could compromise national security. US officials worry that China will use key US technology to strengthen its military. They have regularly accused Beijing of stealing IP and forcing American companies to transfer their technologies to China. 

Additionally, according to several economists, China artificially kept the value of its currency, the renminbi, low in the decade following its accession to the World Trade Organization (WTO) by amassing US dollar reserves. 

A weaker renminbi makes the United States’ trade deficit with China worse, making Chinese products more affordable abroad and US commodities more expensive in China.

The two largest nations in the world depend heavily on each other, but their relationship is very imbalanced. With the invite, people are hopeful that the two will mend their relationship for better trade regulations.

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